Answer: $2,500
Explanation:
The American opportunity tax credit (AOTC) is a measure by the IRS that is a credit for QUALIFIED education expenses paid on Eligible students.
A maximum of $2,500 in credit can be acquired per eligible student.
To qualify for the full amount of this tax credit, your Modified Adjusted Gross Income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).
The Shaws are married and file jointly with a MAGI of $148,000 which is less than the $160,000 limit which means that they are due for the entire credit amount of $2,500 as they pay education expenses for their ONE dependant child assuming Dante meets the various eligibility criteria.
The amount of the Shaws' American Opportunity credit for the year is $2,500.
If you need any clarification, do comment. Cheers.
Answer:
See below
Explanation:
With regards to the above information, the contribution margin is computed as seen below.
Contribution margin per composite unit = Selling price per composite unit - Variable cost per composite unit
= $150 - $50
= $100
Hence, the contribution margin per composite unit is $100
Answer:
Debit to Unearned Rent
Credit to Rent Earned for $2,925
Explanation:
Given:
Amount of total rent = $7,800
Computation:
Amount unearned = Amount of total rent (3months / 8 months)
Amount unearned = 7,800 [3/8]
Amount unearned = $2,925
Journal entry:
Unearned rent A/c Dr $2,925
Rent A/c Cr $2,925
[Debit to Unearned Rent
Credit to Rent Earned for $2,925]
